Holcim Shares Rise on Strong Q3 Profitability and Cost Control

Holcim AG, based in Switzerland, saw its shares rise by 2.2%. This rise came after the company posted strong financials for the third quarter of 2025. The firm beat market ideas. Recurring EBIT exceeded estimates by 2.5%. Cost control and increased sales of sustainable products helped drive this result.

Key Financial Highlights:

• Recurring EBIT: Grew 9.8% in local currency to CHF 2.28 billion over the first nine months. The margin expanded to 19.1%.
• Third-quarter recurring EBIT: Hit CHF 836 million, just above CHF 835 million from Q3 2024.
• Margin Improvement: The third-quarter margin increased to 20.7% from 20.2% year-on-year.
• Net Sales: Grew 2.9% to CHF 11.9 billion over the first nine months. Q3 net sales reached CHF 4.04 billion, a small drop from CHF 4.14 billion in Q3 last year.

Holcim’s CEO, Miljan Gutovic, linked the margin growth tightly to the firm’s focus on high-value, sustainable materials and fast decarbonization. The company closed 14 strategic deals in Europe and the Americas in 2025. These actions strengthened its market stance.

Regional Performance:

• Europe: Recurring EBIT climbed 5.9% and the margin improved by 130 basis points.
• Latin America: Net sales rose by 10%, yet recurring EBIT fell by 10.3%.
• Asia, Middle East, Africa: Recurring EBIT increased by 14.7% with a 240 basis point gain in margin.

Sustainability Leadership:

Sales of sustainable products play an important role:

• ECOPact low-carbon concrete made up 31% of ready-mix net sales, up from 26%.
• ECOPlanet cement rose to 35% of cement net sales, from 32%.
• Recycling of construction demolition materials grew about 20% compared to last year.

In October, Holcim signed a binding deal to acquire Xella. Xella is a European maker of sustainable walling systems with estimated 2025 net sales near €1 billion. This deal aims to grow Holcim’s share in the sustainable walling market, which is over €12 billion. The deal should close in H2 2026 if regulators approve it.

Outlook and Guidance:

Holcim confirmed its full-year 2025 targets:

• Recurring EBIT should grow between 6% and 10% in local currency.
• The EBIT margin is expected to stay above 18%.
• Free cash flow before leases should reach around CHF 2 billion.
• Net sales should grow by 3% to 5%.
• Recycled construction demolition materials should grow more than 20%.

Jefferies kept a “buy” rating with a CHF 81.40 price target. They noted that Holcim keeps its margins strong.

Holcim stays focused on sustainable solutions and tight cost control. These efforts drive solid and clear profit growth. This steady strategy helps the company lead in the global building materials market.

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